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Vishal Mega Mart shares slip after analysts reiterate Buy calls
Emkay Global forecasts about 18% revenue CAGR and 27% PAT CAGR for FY26 to FY29, while Jefferies points to a 2,000-store goal.
Vishal Mega Mart’s stock ended lower on the BSE after a brief rise, closing 1.1% down at ₹105.20 on Thursday, 24 September, according to LiveMint Markets. Shares had been up nearly 2% earlier before giving back gains.
Brokerage notes kept the focus on the retailer’s expansion plans and margin outlook. Emkay Global Financial Services maintained a Buy rating with a target price of ₹170, citing store growth, a private-label strategy, quick-commerce opportunity, and scope for margin improvement, with forecasts for around 18% revenue CAGR and 27% PAT CAGR between FY26 and FY29.
Emkay expects same-store sales growth to remain volatile quarter to quarter due to festive and seasonal shifts, but still sees confidence in delivering double-digit SSG annually. It also highlighted room to expand, saying the existing large-store format could support about 1,200 stores, while a smaller-store format being tested in towns with around 40,000 people could raise the potential addressable store count to nearly 4,000.
Jefferies also retained a Buy rating, setting a target of ₹160, implying roughly 54% upside versus a market price around ₹104. The brokerage pointed to evolving value-for-money as consumer aspirations rise, and noted management’s view that the current 833-store network is only the beginning, with a target of around 2,000 stores. It also referenced ongoing investments in technology, warehousing capacity, and gradual RFID rollout to improve inventory management and reduce shrinkage.